Where to keep your savings

Where you park savings matters almost as much as how much you save. The right account keeps money safe, reachable and earning something.

Checking

For bills and daily spending. Usually earns little or no interest. Keep enough here for a month of bills plus a small buffer.

Savings and high-yield savings

Good for emergency funds and sinking funds. Online banks often pay noticeably more interest than traditional branch banks. Rates change frequently, so compare the APY before opening an account.

Certificates of deposit (CDs)

You lock money up for a set term in exchange for a fixed rate. Useful for money you know you will not need until a specific date. Withdrawing early usually costs a penalty.

Check the insurance

Deposits at FDIC-insured banks and NCUA-insured credit unions are protected up to $250,000 per depositor, per institution, per ownership category. Confirm an institution is insured before you deposit.